ILX RESORTS REPORTS RECORD SECOND-QUARTER RESULTS

Source: ILX Resorts, Inc.

July 23, 1999
PHOENIX-- ILX Resorts Incorporated (AMEX: ILX) a leading developer, operator and marketer of upscale flexible-stay vacation ownership resorts in the Western United States, Friday announced its results for the three and six months ended June 30, 1999.

Total revenues for the second quarter and six months ended June 30, 1999 were $10.4 and $19.2 million, the highest for a second quarter and six-month period ending June 30 in the company's history, and 12.7 percent and 8 percent higher than the same periods of 1998.

The increase in revenue reflects greater interest income as the company retains and borrows against more of its consumer paper, allowing it to earn the spread between the consumer rate and the company's lower borrowing rate, and increased sales of vacation ownership interests.

Net income for the quarter was $393,000 and for the six months ended June 30, 1999 was $398,000, and net income per share was $0.09 for both periods.

"Our second quarter results reflect substantial improvement in tour generation and closing rates, particularly in our Sedona sales office," said Joe Martori, chairman and chief executive officer.

Martori continued, "As we look toward the third quarter and second half of 1999 we anticipate continued recognition of the benefits of the important sales and marketing changes made in the first quarter of 1999 and, in addition, the rewards of the interest income spread on consumer paper made possible by the substantially reduced interest rates on our borrowings which were negotiated in the second half of 1998. We remain optimistic about the fundamentals of our core business."

ILX Resorts also reported that it intends, subject to board approval, to repurchase an additional 400,000 shares of its common stock, from time to time, as market conditions and other factors warrant, in open market or privately negotiated transactions.

Such re-purchased shares of common stock will be made directly by the company and become treasury shares of the company, and by the company's Employee Stock Ownership Plan and/or its Profit Sharing Plan.

ILX Resorts Incorporated develops, operates and markets upscale vacation ownership resorts. The company owns, operates and markets interests in five resort properties in Arizona and Colorado, as well as two Varsity Clubs of America properties, one in Indiana (adjacent to the University of Notre Dame) and one in Tucson, Ariz.(within three miles of the University of Arizona).

In addition, the company markets interests in resorts located in Boca Raton, Fla. and Puerto Vallarta, Mexico. The company has an additional property in San Carlos, Mexico that it markets through its ILX Premiere Vacation Club. Internet users can visit the ILX Resorts Incorporated web site at http://www.ilxresorts.com.

This news release constitutes certain "forward-looking statements" including statements regarding, among other items, the company's growth strategy, industry and demographic trends and anticipated trends in its business.

Actual results could differ materially from these forward-looking statements as a result of a number of factors, including, but not limited to, the company's need for additional financing, intense competition in various aspects of its business, the risks of rapid growth, its dependence on key personnel and other risks detailed from time to time in ILX's Securities and Exchange Commission reports.